Major! Construction of Hengyi’s 25.7 Billion RMB Coal-to-Ethylene Glycol Project Fully Underway

As of early August 2026, the Hengyi Turpan 2.4 million tons/year coal-to-ethylene glycol (Phase I) project, with a total investment of 25.7 billion yuan, has achieved phased progress. The civil foundation works for 12 individual buildings on-site have been fully initiated, and the construction of key sections such as the power unit and coal storage and transportation system is proceeding in an orderly manner, with various construction milestones being achieved as planned.

Joint efforts from multiple parties to overcome challenges, ensuring key concrete pours in high-temperature environments

The implementation entity of this project is Hengyi Energy Technology (Turpan) Co., Ltd.. China National Chemical Engineering No. 13 Construction Co., Ltd. and No. 16 Construction Co., Ltd. undertake the construction tasks for the core sections, while Chengda Engineering Corporation of China is responsible for the engineering design. The gasification process utilizes 4 sets of 3000-ton-level gasifiers from Aerospace Maiwei, and the ethylene glycol process package is provided by Shanghai Pujing Chemical Industry Co., Ltd., including complete sets of technology and proprietary catalysts.

Due to the persistent high temperatures in Turpan during summer, the project site implemented multiple heatstroke prevention measures, such as off-peak night construction and the deployment of spray cooling systems. These measures successfully completed the controlled continuous mass concrete pouring for the No. 1 boiler foundation and achieved significant breakthroughs in the power unit and coal storage and transportation system, laying a solid civil engineering foundation for subsequent equipment installation.

Liu Yongjun, General Manager of Hengyi Energy Technology (Turpan) Co., Ltd., introduced that all participating units are keeping a close watch on key nodes and accelerating progress. The overall construction cycle of the project is 36 months, striving to complete the commissioning and trial production of the entire system in the first half of 2028.

Project Key Construction Timeline

- December 2025: The project's environmental impact assessment received approval and public notice from the Xinjiang Ecology and Environment Department

- March 20, 2026: The Hengyi Turpan Coal-Chemical-Textile Integration Phase I 2.4 million tons coal-to-ethylene glycol project officially commenced

- April 2026: The gasification unit process package review was completed, and engineering design work was fully launched

- August 2026: The civil foundation works for 12 individual units were fully initiated, and the project entered the large-scale civil construction stage

- Planned for the first half of 2028: Achieve commissioning and trial production of the entire system

Building a complete coal-chemical-textile industry chain with a total planned investment of 150 billion yuan

Hengyi Group plans to invest a cumulative total of 150 billion yuan in Turpan over the next 5-8 years to build a "coal-chemical-textile" integrated new material industry base based on the concept of "from a lump of coal to two strands of silk and then to a bolt of cloth." This aims to create a complete closed loop from coal resources to finished chemical fiber products and promote the local clean conversion of coal resources.

Phase I Project focuses on constructing 2.4 million tons/year fiber-grade coal-to-ethylene glycol, along with supporting facilities including a 15 million tons/year coal mine, a hundred-kilometer dedicated ethylene glycol pipeline, the Qiquanhu railway dedicated line, and a 1 million kilowatt wind-solar new energy project.

Phase II Planning involves the layout of 2 million tons of PET, 3.43 million tons of PTA, and 1.46 million tons of PA6 units, further extending downstream to perfect the full coal-chemical-textile industry chain system.

Strategic Significance: Addressing upstream raw material shortages and enhancing supply chain autonomy and controllability

Founded in 1974 and headquartered in Hangzhou, Hengyi Group is a Fortune Global 500 enterprise with total assets exceeding 160 billion yuan. It is one of the few private petrochemical and chemical fiber enterprises in the world possessing complete dual industry chains for PTA-polyester and caprolactam-nylon. It owns an overseas refining and chemical base in Brunei, with products covering textiles, packaging, new materials, and other fields.

As a core raw material for the polyester industry, domestic ethylene glycol supply has long relied on imports and oil-based routes. Hengyi's downstream polyester sector consumes over 4 million tons of ethylene glycol annually. The commissioning of the Phase I 2.4 million million tons coal-to-ethylene glycol capacity will significantly increase the Group's self-sufficiency rate in raw materials, hedge against risks from international oil price fluctuations, and complete a critical upstream extension of the industry chain into the coal chemical sector.

Qiu Jianlin, Chairman of Hengyi Group, commented that the Turpan project is the core strategic project with the highest technical difficulty in the Group's 52-year history. Once completed, Phase I of the project can directly provide over 1,700 jobs and drive the development of supporting industrial clusters such as fine chemicals, logistics and warehousing, and equipment operation and maintenance. Hengyi Energy Technology (Turpan) Co., Ltd. is a wholly-owned subsidiary of Hengyi Group, responsible for the unified coordination and operation of the entire sector, including coal mines, coal-to-ethylene glycol, wind-solar new energy, and storage and transportation pipelines.